Versatile Mixed-Use Property in
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820 Gateway Lane, Tea, SD 57064
5,320 SF mixed-use property with showroom and warehouse space.
Property Size5,320 SF
Price / SF$263.16
Days on Market92
Property Features for 820 Gateway Lane
General Information
Standard status
Active
Size
5,320 SF
Class
A
Property subtype
Retail, Industrial
Zoning
Municipality
Listing Agency:
Tysdal Commercial
(605) 376-0127
Listed By:
Ryan Tysdal · License #SD 15186
Source:
Crexi
Added: May 12
Changed: Aug 8
Last Checked: Aug 8 at 7:18AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Tysdal Commercial
Investment Insights
Based on property information with market context.
This 5,320 square foot mixed-use property features an open showroom floor, warehouse space, mezzanine space, and restrooms. Located at the intersection of 271st Street and Heritage Parkway, the site benefits from a combined traffic count of 8,650 vehicles per day. Area tenants include Squealer's Smoke Shack Bar & Grill, Casey's, Zooks Coffee Bar, Scooter's Coffee, Advanced Auto Spa, Gateway Park Hotel and Suites, Dollar General, O'Reilly Auto Parts, and Pizza Ranch.
Key Highlights
- 5,320 sqft of versatile space including open showroom, warehouse, and mezzanine.
- High Traffic Location: Intersection of 271st Street and Heritage Parkway with 8,650 vehicles per day.
- Diverse Layout: Features an open showroom floor, warehouse space, and mezzanine.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$49,872
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.56%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$997,440
$997.4K
Cap Rate 7%
$712,457
$712.5K
Cap Rate 9%
$554,133
$554.1K
Market Conditions
NOI Build-Up for 5,320 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$76.6K $14.40/SF
− Vacancy
−$5.4K −$1.01/SF
EGI
$71.2K $13.39/SF
− OpEx
−$21.4K −$4.02/SF
NOI
$49.9K $9.37/SF
Area
Lincoln County, SD
Vacancy
7.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$997,440
Cap Rate 7%
$712,457
Cap Rate 9%
$554,133
Alternative Uses
Best Use
Retail
$712.5K
$623.4K – $831.2K
NOI $49,872 @ 7.0% cap · market cap 3.56%
Second Best
Mixed Use
$541.7K
$474.0K – $632.0K
NOI $37,921 @ 7.0% cap · market cap 2.71%
Theoretical Best
Office A
$1.18M
$1.03M – $1.38M
NOI $82,673 @ 7.0% cap · market cap 5.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
246
Businesses Nearby
Explore this area
Business Placement
Demographics for 57064, SD
6,908
Population
2,652
Households
2.6
Avg Household Size
31
Median Age
39%
College-Educated
98%
High-School Grad
25.6 sq mi
ZIP Area
270
Density / Sq Mi
$104,351
Median Household Income
$54,400
Median Earnings
$1,132
Median Rent
$330,800
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 5,320 SF mixed-use property with showroom and warehouse space.
Where is this mixed-use property located?
The property is located at 820 Gateway Lane Tea, SD.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: 5,320 sqft of versatile space including open showroom, warehouse, and mezzanine.; High Traffic Location: Intersection of 271st Street and Heritage Parkway with 8,650 vehicles per day.; Diverse Layout: Features an open showroom floor, warehouse space, and mezzanine.
